Last year, cellphone makers shipped more than 1 billion handsets for the first time, according to technology research firm IDC.

IDC reported that vendors shipped 1.019 billion units in 2006, or 23 percent more than the 832.8 million units shipped in 2005.

Nokia remained the largest handset manufacturer, followed by Motorola and Samsung. Sony Ericsson vaulted to the No. 4 spot, leaping over LG.

A strong fourth quarter drove the record shipments, according to an AP story of the report. During the period, a total of 1.02 billion phones were shipped, an increase of 22.5 percent from the 2005 tally of 833 million units.

However, profit margins dipped as handsets to emerging markets became a larger percentage of overall sales.